FED:Keybridge Capital expects H1 loss

Keybridge Capital
, which invests in structured finance transactions,
has flagged a first-half loss as it continues to sell investments in order to pay off debt.

Keybridge said it expects to post a loss for the six months ended December 31 because of a shortfall in operating income, a likely fall in the carrying values of its investments, and the impact of the stronger Australian dollar.

The company posted a $39.2 million loss in the first half of financial 2010. Almost two thirds of Keybridge's investments are in aviation infrastructure, with the remainder in lending, shipping and property, and most are priced in US dollars.

In the three months ended December 31 Keybridge received investment repayments of $10 million.

It has approximately $112 million in outstanding debt, and the $70.5 million repayment obligations for March have been met, with about $80.5 million paid to date, Keybridge said.

Investment repayments are expected to make up for a shortfall in cashflow for the next 12 months, the company said.

Keybridge shares were up by 0.3¢ to 9.4¢ at 12.39pm Sydney time. The company is scheduled to release its first-half results on February 10.